The Crypto Chart Nobody Is Watching - Bitcoin Markets Enter Very Important Stage

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The Crypto Chart Nobody Is Watching - Bitcoin Markets Enter Very Important Stage

Author: Visionary Finance
August 10th , 02:21 PM


Bitcoin markets have been exciting in 2019 as regulation moves forward and sentiment changes from bearish to bullish in 2019. Bitcoin has recently surpassed $11,500 which equates to 200% + gain year to date. As more buyers and sellers enter the markets, many are unfamiliar with the stage Bitcoin is entering. In a recent crypto research report by Visionary Financial, we mentioned Bitcoin “Market Dominance” is important to watch. Market Dominance simply shows how much of the crypto market Bitcoin controls. With the recent rally, Bitcoin is approaching a 70% Market Dominance. This means 70% of the capital in the crypto markets is being deployed into Bitcoin. If we take a look at historical figures, we can see Bitcoin is reaching significant levels to assess price momentum.  



Crypto Technicals Entering Important Stage  


Bitcoin has done extremely well this year, but many altcoins have struggled. Many of these altcoins were projected to have great years, and Bitcoin has completely taken over. For those unfamiliar, the term “altcoin” simply refers to Bitcoins smaller competitors such as Ethereum, XRP and Litecoin. If we take a look at historical values, we can see the difference Bitcoin is making this year. 


1 Year Performance: (Keep in mind this figure will be different than “year to date” returns


Bitcoin: +87%

Ethereum: -41%

XRP: -13.5% 

Bitcoin Cash: -71% 


The Most Important Chart in Crypto Right Now 


As we mentioned above, Bitcoin market dominance has recently surged with the price action. Currently Bitcoin is about to test the 70% market dominance level. This could be a very critical level to determine momentum. As we’ve mentioned in recent research report, Bitcoin tends to outperform as its dominance increases. On the flip side, altcoins tend to outperform when bitcoin loses market dominance. When Bitcoin sells off, that capital tends to be redeployed into altcoins. The last time Bitcoin market dominance breached 70% levels, it was the start of the massive altcoin rally. During this time, you can see Bitcoin dominance was falling, as altcoins such as Ethereum and XRP were gaining massive market share. During the altcoin bull run of 2017, XRP gained +36,000% and Ethereum gained +9,100%. The famous term on social media is “altseason”, referring to this era where altcoins were outperforming as Bitcoin was dropping. Many have been calling for “altseason” for a while, but the fundamentals lacked. In the stage we are currently witnessing, one could argue altseason 2.0 is coming to fruition. 



*Chart Sourced From CoinMarketCap


The next 2-3 weeks in crypto could be very interesting. As Bitcoin approaches the 70% dominance test, many will see this as a long-term sentiment indicator. If Bitcoin can surpass 70% levels, one will argue altcoins will continue to sell off as Bitcoin becomes more powerful. If Bitcoin begins a sharp sell-off with dominance dropping, there is a strong argument that altcoins could rise substantially in value based on historical figures. 


Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.


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